Central Banks Eye Record Gold Buying as 74% See Dollar's Reserve Share Falling
Updated
Updated · Kitco NEWS · Jun 16
Central Banks Eye Record Gold Buying as 74% See Dollar's Reserve Share Falling
3 articles · Updated · Kitco NEWS · Jun 16
Summary
A record 45% of central banks expect to raise their own gold holdings over the next 12 months, while 89% see global official gold reserves increasing, the World Gold Council said.
Diversification led the buying case: 31 of 34 planned buyers cited it, while reserve managers also pointed to economic risk, concerns over reserve-currency economies and gold's crisis performance.
Gold's strategic role is widening beyond emerging markets, with 18% of advanced-economy central banks also planning purchases and newer buyers including Indonesia, Malaysia, Guatemala and El Salvador.
Over five years, 84% of respondents expect gold to take a larger share of global reserves and 74% expect the U.S. dollar's share to decline, extending a shift that has seen central banks buy about 1,000 tonnes annually for four years.